Since February 2009, certificates of deposit balances at credit unions have declined by $10 billion while money market accounts increased by $29 billion.
That's according to the April Credit Union Trends Report from CUNA Mutual Group, which tracked data through February. Through the first two months of 2010, deposits were up almost $12 billion (1.5%), but due to very strong deposit inflows in early 2009, annual growth slowed to 6.9%.
On a year-to-date basis, regular shares are up 3.7% as are MMAs at 3.0% and CDs are down
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1.3%. Estimates of current deposit yields continue to fall and CUNA Mutual Chief Economist Dave Colby expects the first quarter cost-of-funds to decline to new record lows.
"We have likely passed our peak deposit surge for this economic cycle. Many credit unions are discouraging deposit inflows, because when you net out the cost of funds from investment returns, the 89 [basis point] spread leaves little room for expenses and the additional assessments," Colby noted.
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